Through the Cardlytics platform, retailers nationwide are able to present consumers with relevant messages and offers based on consumers’ actual buying behavior.
Cardlytics, a pioneer of Transaction-Driven Marketing, released aggregated advertiser performance results at the NRF Big Show.
The 2011 results spanned across multiple retail categories. The results demonstrate Cardlytics’ ability to drive large increases in incremental sales volume and measurable ROI for advertisers.
Key vertical market performance results:
Incremental $ Sales Growth (in first month)
Campaign ROI ** (in first month)
(Grocery, Dollar Stores, Mass Merchandiser)
(Entertainment, Pet Specialty, Electronics, Sporting goods)
(Family, Discount & Department Stores)
(Casual Dining & Quick Service Restaurants)
* Results are based on volume increases among targeted consumer segments versus a random control group within that same segment.
** ROI is calculated by measuring incremental sales increase during campaign divided by total cost of campaign. This total cost includes the media fees as well as any associated consumer offer or discount. Ongoing purchase from new customers post campaign is not contemplated in this ROI.
“We set aside a control group from each target customer segment,” noted Pat Venker, senior vice president of merchant analytics, and a 20-year veteran of merchant analytics with Catalina, IRI and Nielsen, as he described the measurement methodology. “The random generation of a control group allows us to validate that the targeted and control populations behaved similar in terms of sales and trips before a campaign. Once you’ve established that you have homogeneity between those two groups you simply measure the variance in the targeted volume to the control volume to measure incremental sales and trips. We do a battery of statistical testing at the completion of the campaign to validate the robustness of the results.”
While the immediate performance results announced here are impressive, the long-term ROI is significantly greater. ROI results in the chart above are based only the value of increased volume achieved during the campaign. Post campaign purchases by new or re-engaged customers, all tracked and reported by Cardlytics over time, multiplies return on investment.
Through the Cardlytics platform, retailers nationwide are able to present consumers with relevant messages and offers based on consumers’ actual buying behavior. Messages and rewards are delivered via trusted banking channels, including online and mobile banking, SMS and email. Cardlytics will reach 70% of all U.S. households in the coming months.
“These performance results demonstrate the ground-breaking power of the Cardlytics platform to segment households by purchasing behavior and thereby deliver truly relevant rewards and advertising that drive increased purchasing and stellar returns for merchants,” said Scott Grimes, CEO Cardlytics. “Because retailers only pay when we secure business, we virtually guarantee a strong return on investment.”